Sub-$500,000 Sunshine Coast investment options “drying up” as property values firm “slightly”: HTW

Investors may have “missed the boat” on some sub-$500,000 property investment opportunities on the Sunshine Coast as some confidence returns to the market and values firm “slightly” reports valuation firm Herron Todd White.

However, there are still opportunities for investors to snap up investments below or around the half a million mark near the coast, close to amenities with ocean views.

“We have seen some confidence returning, and there are some areas where the [$500,000] boat may have been missed, but not by much,” says the valuation firm in its July report examining cheaper investment opportunities at the start of the new financial year.

“The Kawana stretch and some inner Caloundra, Maroochydore and Noosa areas have seen some of the rot stop with a slight firming in values being experienced on the back of this returned confidence.

“Houses were beginning at the circa $400,000 price point, but with stock around this level drying up the price point appears to be around the $450,000,” says Herron Todd White.

Searches across real estate listings websites indicate options close to the water under $500,000 are limited.

Potential investment options below half a million could include this recently renovated three-bedroom house at Noosa Heads listed for $400,000 through Dowling & Neylan Real Estate.

Coastal options are more plentiful in the unit market which has seen an “increase in popularity over recent times in these inner areas”, according to Herron Todd White.

“This has been largely for more permanent living style home units appealing to the buyer that wants to be able to lock and leave.

“They typically offer three-bedroom, two-bathrooms and two-car accommodation and are of a good size providing a viable alternative to a block of land and house.

“An example of this is the Cotton Tree area of Maroochydore, close to river, beach and cafe’s with prices in the circa $500,000.”

Current listings in Cotton Tree include this two-bedroom, two-bathroom unit on Sixth Avenue, Maroochydore which is listed for $479,000 through Ned Byrne & Don Greeff from Cotton Tree Real Estate – Maroochydore. The apartment has ocean views and is just 100 metres from the beach.

Moving inland from the coast, Herron Todd White says there are opportunities throughout the hinterland.

“The options tend to be for older properties (10 to 20 yrs old) close to the various hinterland towns.

“The big positive for these properties is that the purchase prices still tend to be below what it costs to develop/replace the property.”

“This, you would have to think, should hold you in good stead in the future as the strengthening market moves out to these areas.

Herron Todd White says less activity in the quieter winter months and the looming federal election, when people usually put their major decisions on hold could possibly put pressure on some vendors.